| Citation(s) |
|---|
| 2017 SLG 1667 2017 SLD 1667 2017 LHC 3661 (2017) 117 TAX 18 2018 PTCL 141 2018 PTD 208 |
Case No: ICA 855 of 2014, Date of hearing: 17-11-2017
MASUD ABID NAQVI, JUSTICE, SHAHID, JAMIL KHAN, JUSTICE
Appellant(s)/ department by: Mr. Sarfraz Ahmad Cheema, Advocate. M/s Liaquat Ali Chaudhary, Raja Sikandar Khan, Muhammad Asif Hashmi, Kausar Parveen, Foziya Bukhsh, Muhammad Asif, Imran Rasool, Mian Yusuf Umar, M. Shahid Usman, Umair Awan, Irshad Ullah Chatha, Shahid Sarwar Chahil, Sohail Zahid Butt, Hafiz Shahzad Ahmad Cheema, Ch. Muhammad Yasin Zahid, Waqar A. Sheikh, Rana Muhammad Mehtab, Javed Akhtar, Amjad Hussain Malik, Sultan Mahmood, Malik Abdullah Raza, Muhammad Asif Butt, Shagufta Ijaz, Muhammad Akram Awan and Abdul Rehman Khalil, Advocates for the appellant-department in connected appeals. Barrister Imran Aziz Khan, Tahir Mahmood Khokhar and Mian Irfan Akram, Deputy Attorney Generals for Pakistan.
Respondent(s)/ Taxpayers by: Mr. Shahbaz Butt, Advocate.M/s Mansoor Usman Awan, Naved A. Andrabi, Imtiaz Rashid Siddiqui, Barrister Shehryar Kasuri, Barrister Qadir Buksh, Ali Sibtain Fazli, Rana Muhammad Afzal, Muhammad Ajmal Khan, Khurram Shahbaz Butt, Muhammad Humzah, Raza Imtiaz, Jamshid Alam, Qadeer Kalyar, Muhammad Imran Rasheed, Salman Zaheer, Shahid Hussain Ch., Zafar Iqbal, Yawar Mehdi Naqvi, Mirza Mubashar Baig, Ch. Wasim Ahmad, Muhammad Mansha Sukhera, Muhammad Mohsin Virk, Muhammad Ahsan Virk, Abdul Qadoos, Ch. Imran Masood, Dr. Ilyas Zafar, Syed Nasir Ali Gillani, Waheed Shahzad Butt, Shehzeen Abdullah, Asghar Leghari, Hussain Ibrahim, Muhammad Younas Khalid, Muhammad Akram Saleh, Asghar Ahmad Kharal, Muhammad Shabbir Hussain, Muhammad Ijaz Ali Bhatti, Omar Tariq Shamim, Mudassar Shuja-ud-Din, Ali Hasnain, Tahir Naeem, Waseem Ahmad Malik, M. Iqbal Hashmi, M. M. Akram, Muhammad Tahir Amin, Nadeem Mehmood, Sheikh Aqeel Ahmad, Zargham, Muneeb Zafar, Salman Ahmad, Ehsan-ur-Rehman Sheikh, Monim Sultan, Nasir Khan, Barrister Pirzada Aurangzaib, Syed Ali Imran Rizvi, Rasheed Ahmad Sheikh, Shoaib Ahmad Sheikh, M. Waseem Chaudhry, Zeeshan Ali, Aurangzeb Tahir, Muhammad Naeem Munawar, Muqtedir Akhtar Shabir, Sh. Aqeel Ahmed, Muhammad Shahid Baig, Rana Hammad Aslam, Ch. Muhammad Ali, Salman Ahmad, Muhammad Masud Akhtar, Sohail Raza, Mian Haseeb-ul- Hassan, Irtaza Naqvi, Javed Iqbal Qazi, Usman Javed Qazi, Rana Munir Hussain, Sayyid Ali Imran Rizvi, Abdul Waheed Habib, Zaeem-ul- Farooq Malik, Salman Hasan, Ahmad Farooq, Saleem Iqbal Rathore, Munawar-us-Salam, Agha Sarfraz Ahmad, Muhammad Aleem Irshad, H.M. Majid Siddiqi, Sajid Ijaz Hotiana, Iftikhar Ahmad Khan, M. Shahid Mukhtar Chandia, Mirza Anwar Baig, Jan Muhammad Chaudhry, Shahzad Mahmood Butt, Muhammad Saqib Sheikh, Zurgham Lukhesar, Syed Murtaza Ali Zaidi, Mian Abdul Ghaffar, Muhammad Amir Malik and Rana Muhammad Aslam, Advocates for the respondents taxpayers in connected appeals.
THE FEDERAL BOARD OF REVENUE ETC.
VS
M/S CHENONE STORES LTD.
Law: Income Tax Ordinance, 2001
Section: 114(2)(b),176,177,177(1),177(1)(a),177(1 )(b),177(2),177(3),177(4),177(4)(d),177( 7),214C
Law: Constitution of Pakistan, 1973
Section: 4,8,25,110,10A,18,23,25
Law: Customs Act, 1969
Section: 31A
Law: Sales Tax Act, 1990
Section: 25,34,42B,72B
THIS JUDGMENT DELIVERED BY: SHAHID JAMIL KHAN, JUSTICE:---.--- This judgment shall decide two sets of appeals filed respectively against two judgments delivered by different learned Single Benches of this Court. Common question of Commissioner's powers to select for audit, under three Federal Taxing Statutes, is involved. Lists of the appeals, respectively, are annexed as Annexures A B. Appeals listed in Annex-A are filed by Revenue Department assailing judgment dated 10.05.2012 in Writ Petition No.393 of 2012, ("Chenone Stores"); whereas, the appeals listed in Annex-B are filed by Taxpayers against judgment dated 27.05.2015 in Writ Petition No.4691 of 2012 ("Kohinoor Sugar Mills"). 2. Both the judgments are contended to be at variance; In Chenone Stores' judgment notices of selection for audit, issued, after amendments through Finance Act 2010, by Commissioner under Section 177 of the Income Tax Ordinance 2001 ("Ordinance of 2001"); Section 25 of the Sales Tax Act 1990 ("Act of 1990") and Section 46 of the Federal Excise Act 2005 ("Act of 2005"), were declared illegal and without lawful authority, after striking down first proviso to the Section 177 (1). The Kohinoor Sugar Mills' judgment had also dealt with validity of notice of selection for audit, issued by Commissioner under Section 177, after amendments through Finance Act 2010. The Explanations inserted, during proceedings, through Finance Act 2013, were treated to have retrospective effect, therefore, the selection by Commissioner was held to be in accordance with law. 3. Earlier; Chenone Stores ' judgment was assailed directly before Supreme Court of Pakistan through Civil Appeal No.1032 of 2012 along with connected Civil Appeals. The appeals were remanded, with consent of the parties, by the August Court to this Court, directing to treat them as appeals against original order and issue notice to the Attorney General under Order XXVII-A CPC. Operative part of the order is reproduced:- "4. We agree with the learned counsel but at the same time, we are mindful of the objection of non issuance of notice to the learned Attorney General by the learned High Court could have been taken up as one of the…